What Is the Global Minimum Tax?
The Global Minimum Tax, led by the OECD, aims to establish a minimum corporate lien of 15% for multinationals with revenues exceeding €750 million. This scheme aims to prevent tax base erosion and ensure fairer tax competition worldwide.
Hungarian Position vis-à-vis OECD Rules
Hungary, known for its tax competitiveness with one of the lowest corporate tax rates in Europe, faces challenges in implementing the Global Minimum Tax. While the country stands committed to aligning with international OECD regulations, it also aims to maintain competitiveness for foreign investment.
Possible Effects on Businesses and the Country
- Complementary tax obligations: Multinationals operating in Hungary could face adjustments (complementary taxes) if their effective tax rate is below 15%.
- Increased monitoring of the Tax Administration: Increased documentation and reporting requirements for multinational companies.
- Fiscal responsibility and economic growth: In complying with the OECD standards, Hungary highlights its efforts to balance tax responsibility and economic increase.
Recommendations for Enterprises
- Re-evaluate tax strategies: It is crucial to analyze how the new rules will affect transactions in Hungary.
- Strengthen documentary preparation: Make sure of transparency and comply with the OECD reporting requirements.
- Professional support: Working with international tax specialists can make it easier to adapt to regulatory amendments.
TPC Group Assistance
At TPC Group, we understand that multinational companies face the challenges of the Global Minimum Tax. Our experienced Transfer Pricing and tax compliance team can assist you in adapting your strategies to ensure compliance and optimize your transactions.
Contact us for further information!
Source: Hungarian Conservative